All Forum Posts by: Georges A.

Offer sent on Friday will keep you guys posted if I get it or not. Fingers crossed

On another note, what's with MOLD and being blown way out of proportion? Everyone is scaring me about it... Okay so the finished basement has mold and water damaged walls. I have never dealt with mold before but doing some research all I need is:

- Wear protective gear

- demo the affected walls (the ones not dry)

- Moldicide + vacuum it all and not use bleach

(I don't have any air ducts so one less thing to worry about)

- Wait a few days, look for mold and if none put back the dry walls

I can do it all by myself no? or do I need to get a licensed contractor that charges me 6-10k cz I live in MA and you need to get a license to dance here (true story check it out)

@Chris Pasternak can you update us on what you ended up doing?

thanks

I have money for 4 down payments on 4 different investment properties allowing me to go with a conventional lender in the short run. However, I will soon run out and need to consider looking into other creative financing.

I have seen case studies with HML but that only work for house flipping/ rehabbing, not in my case which is Buy & Hold.

The question here is how am I able to fund future Buy & hold properties moving forward. I don't see any type of deal where the HML can make money from a Buy & Hold property unless I am going to refinance after a year with a conventional lender - and we all know how hard that is on investment properties...

can you please throw me some hints and ideas here to set me up on the right track? I am sure I am missing something esp that I keep hearing use OPM use OPM...

thanks guys, i'm about to make my best and final offer as there are multiple offers. Once thing I don't get, don't the banks run any comps before listing a property as the property is listed at 409k but the market price for such a property is > 600k ARV but the repair can't be that much. Or do they do that to get multiple offers?

i'm about to give an offer of 6% , 469k, 3 days inspection, and with financial and inspection contingency. I hope I am not the weakest offer they have lol

203k take a very long time and I dont think is a good option for REOs where they wanna close asap no?

Thanks for all the replies guys.

On another note, do you think I am wasting my time with such offers on foreclosures and REOs? I keep getting outbid by cash buyers. I know that I shouldn't let that get to me, but It already happened to me twice and I keep hearing from my friends at the REIA meetings that it's almost impossible to buy a property in the greater boston area w/o cash or w/o a really solid offer (20-25% down w/o inspection contigancy)

Worst case I'll get an FHA 203k loan

the way I am thinking is

(1) GET THE offer accepted

(2) figure out if I can afford it or not depending on the inspector and general cotnractor.

I agree but the fact that only owner occupants are bidding against me (and they do have multiple offers AND there are damages) I thought waiving the inspection will give me a HUGE advantage as the bank is probably worried about all these owner occupants putting all the money down and freaking out after the inspection and backing off.

Guys give me your insight on this one..

REO in a nice area in Medford listed as a HomeSteps (that unfortunately doesn't exist in MA yet so I'm stuck with a regular loan) so not competing with investors for 409k (comps are 550-600). The property has the following points in the public records:

- Mold - no report

- foundation issue - no report

- cut out and treated wet sheet rock - no report

- basement was cleaned anti microbial - no report

- City assessment : 498k

when I saw the property with my realtor we noticed that in the 1st unit which is a finished basement - I was able to see that they cut the wall and it smells pretty bad (like mold). The other 2 floors looked in a pretty good shape.

So we decided to put an offer (I am limited to 40k cash):

5% down ($1000 deposit and 21k P&S + inspection contingency + financial contigency + 440k leaving around 8k for closing cost and 10k for rehab.

The plan is to bring in an inspector this Wednesday and have him inspect the property (although we're requesting a showing) and if things are not bad (as I am concerned about the structural issue ) we will go ahead and withdraw the inspection contingency we gave.

A part of me thinks it's the best I could do with my financial situation but another part of me thinks it's a waste of $600 for the inspection. do you think it's worth the risk of bringing one / removing the contingency or it won't add up much esp if I competed by a cash buyer. Should I cancel the inspection and wait to see if my offer got accepted before spending the money?

Thanks guys, I really appreciate it. My source was http://www.masslegalhelp.org/housing/legal-tactics1/chapter18-rooming-houses.pdf

I willl look more into it